Daily Option Trading Commentary

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As Expected - SPY 85 Failed - A Price Pattern Will Set In!

A week ago, the market staged a huge intraday reversal after testing horizontal support at SPY 85. That rally was sparked by the G20 meeting and traders did not want to go home short. That one-day rally stalled heading into the weekend. Leaders from the world's largest economies agreed that the financial crisis is dire and immediate action is needed. Unfortunately, the biggest economy has a “lame-duck” President in the saddle for two more months. The market resumed its decline on Monday and bad news seeped in from every corner. The “Big Three” were grilled by Congress as they pleaded…
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Option Trading Article of the Week

Option Trading - Avoid The Option Expiration Rip-Off!

Posted by Pete Stolcers on June 9

In today’s option trading blog I want to try and save you some money. Have you ever been long an in-the-money (ITM) option and cursed at the Market Makers because the options were bid under parity? I have and there is a way to by-pass them altogether. This article could save you hundreds, maybe thousands of dollars. Let’s look at an example. You are long 10 of the $50 calls and the stock is $58 x $58.10. The options are $8 in the money but the market on them is $7.80 x $8.20. You want to get out at a…

Stock Options Question of the Week

How Can I Use Options To Capitalize On A Pre-Open Move?

Posted by Pete Stolcers on November 20

Question Yesterday a stock dropped 21% during premarket trading due to an earnings "miss". I wanted to buy a put option figuring it would increase 450% in value as the stock dropped. I entered orders before the market opened, but I was not able to get filled. How can I execute my option order in these situations?

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